The US distillate supply situation comes in to the spotlight this morning for July heating oil, with the EIA inventory report expected to show a draw in the range of 500,000 barrels. Into this morning's report, distillate inventories have experienced six weekly draw downs and sit nearly 11% below their five year average. While some traders suggested that a seasonal slow down in demand would help replenish inventories, an uncertain and weak economic outlook were likely to keep demand under pressure.